Received 1099-G for 2022 ESD benefits I never got - tax nightmare while appealing $6000 overpayment

Yes, this happened to me! When ESD issues an overpayment notice, they often generate a 1099-G for the year they determined the overpayment, not necessarily when you received the benefits. It's a mess. You need to request a corrected 1099-G from ESD immediately. Call their tax document hotline at 800-318-6022 and explain the situation. You should NOT report income you didn't actually receive in 2022.

im in the EXACT same boat!! got hit with a $8,300 overpayment from 2020 benefits and then got a 1099G for 2022?? makes NO sense. ive been working since august 2020 so didnt get any UI in 2022. the esd website is no help at all

Tax professional here. This is a common issue with unemployment overpayments. What's happening is ESD's system is reporting the overpayment amount as income in the year they determined the overpayment, not when you actually received the benefits. Here's what you need to do: 1. Do NOT report this 1099-G amount on your 2022 taxes if you didn't receive benefits that year 2. Request a corrected 1099-G from ESD explaining the situation 3. Keep documentation of your employment during 2022 as proof you weren't receiving unemployment 4. If your overpayment appeal is successful, make sure ESD issues corrected tax documents for both years The IRS receives a copy of your 1099-G, so you need to get this corrected to avoid a potential audit flag. Don't ignore it hoping it will go away.

I went through EXACTLY this last year. First, don't panic. Second, understand that ESD's left hand often doesn't know what the right hand is doing. What happened in my case is that when they flagged my account for an overpayment from 2020, their system automatically generated a 1099-G for the year the overpayment was PROCESSED (2022), not when I actually received benefits (2020). It's completely illogical and caused me months of stress. If you're trying to reach ESD about this, good luck with regular channels. After weeks of trying, I finally used a service called Claimyr (claimyr.com) to get through to an actual human at ESD who could help. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. It helped me skip the phone queues and actually get someone who could fix my tax documents. In the end, I had to file Form 3949-A with the IRS to report the discrepancy while waiting for ESD to issue a corrected 1099-G. Make sure you keep meticulous records of all your employment in 2022 to prove you weren't on unemployment.

this is a rly common screw up with ESD. got the same thing last yr. you need to call them and ask for a CORRECTED 1099G immediately!!! the problem is they count the overpayment as income in the yr they decide its an overpayment not when u actually got the money. its stupid and makes no sense but thats how their system works.

Thanks everyone for the helpful advice! I feel less panicked now knowing this is a common issue. I'll try calling the tax document line tomorrow to request a corrected 1099-G. Still worried about how this will affect my overpayment appeal, but at least I understand what's happening now.

I can't believe ESD is STILL doing this in 2025! This exact same thing happened to thousands of people back in 2022-2023 after the pandemic benefits ended. You'd think they would have fixed their system by now. But no, still sending out incorrect tax forms and causing massive headaches for people. This is why nobody trusts government agencies to do anything right. 🤦‍♀️

Just checking back - were you able to get through to ESD about the corrected 1099-G? Any progress on your situation?